Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month, the anticipated transient demand for rooms is as follows. Monday

P6.12 The Inviting Inn has 500 available guest rooms. For a certain week next month, the anticipated transient demand for rooms is as follows.

Monday 200

Tuesday 200

Wednesday 200

Thursday 200

Friday 100

Saturday 50

Sunday 50

The Inviting Inn also has committed the following number of rooms for group sales during the same week:

Monday 200

Tuesday 200

Wednesday 300

Thursday 300

Friday 100

Saturday 100

Sunday 100

The Inn has the possibility of booking another of 100 rooms for the night of Tuesday, Wednesday,Thursday and Friday of that week at a discounted rate of $60 per room. The inn's rack rate for transient guests is $80, and it marginal cost per room sold is $15.

a. Assuming the new group is booked, calculate the additional net sales revenue gross sales revenue less marginal costs, to the inn.

b. What factors, other than net sales revenue, might you consider before committing to this new group sale.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIAexcel Exam Review 2018 Part 1 Internal Audit Basics

Authors: S. Rao Vallabhaneni

1st Edition

1119482569, 978-1119482567

More Books

Students also viewed these Accounting questions

Question

5. Identify the logical fallacies, deceptive forms of reasoning

Answered: 1 week ago

Question

6. Choose an appropriate organizational strategy for your speech

Answered: 1 week ago